GBP/USD: The Great Britain pound fell against the US dollar on Wednesday due to a broad US dollar strength. Soaring energy prices inspired greenback investors, who pushed it close to the one-year high touched against a basket of currencies last week. That knocked sterling lower, though it stayed away from the lows hit last week. The prospect of rate hikes signaled by the Bank of England was not enough to support the pound sterling. Today we don’t expect any important macroeconomic data in England. The US will publish the Initial Jobless Claims that show the number of people filing first-time claims for state unemployment insurance this afternoon. The local support level can be seen at 1.3545. A breakout below could take the pair towards 1.3470.
USD/CAD: The US dollar rose against the Canadian dollar in the previous trading session, with the loonie getting back from a four-week-high hit the day before. US yields moved higher following a stronger than expected US private payroll report. The Canadian trade deficit was one of the largest on record. Supply chain issues affected imports more than exports. Also, additional pressure on the Canadian dollar was exerted by the declining oil prices. Additionally, declining oil prices that registered a 2% decline were also weighing on the Canadian dollar. The local support level can be seen at 1.2560. A breakout below could take the pair towards 1.2505.
WTI: Oil prices fell yesterday, getting back from multi-year highs. US crude oil and gasoline inventories rose last week as production rebounded after last month’s storm, while investors expected a decline by 418 thousand barrels. Output was also higher, rising 200 thousand barrels per day in the most recent week. That is not far from pandemic-era highs for US crude production, even though weekly figures are considered less reliable than lagging monthly data. In addition, the product supplied by refineries, a proxy for fuel demand, is in line with pre-pandemic levels of demand. The local support level can be seen at $76.10. If oil prices reach this level and rebound, it can be considered as a trigger to further growth towards $79.90